The Apple Phenomenon – Supply and Demand
Supply and Demand are some of the fundamental components of economics and they serve
as the backbone to the market economy. Supply is a representation of what the market is
capable of producing. The amount supplied is directly determined by the amount a
producer is willing to give for a set price. Demand deals with the desires of the consumer
and how much of a product they are willing to buy. The relationship between these two
concepts is what leads to the allocation of resources in the market and they both have laws
that explain their behavior.
The Law of supply dictates the amount that will be sold at a given price and can be seen as
inversely proportional to demand. The Law of demand dictates that in a fair market, the
demand is determined by the price, it can be said that price is inversely proportional to
demand. These two concepts are of great important to companies who enter and aim to be
successful in the market; one of these successful companies is Apple Inc.
Apple has been at the forefront of their industry since their inception. Some Reasoning
behind this is because they are in a league of their own. The company started in 1976 when
two men, Steve Wozniak and Steve Jobs grew interest and saw potential in an infantile
technology,
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minicomputers. This fascination sprouted one of apple’s key approaches to all of their
endeavors; find a product and make it better.
Apple became incorporated in 1977, this happened shortly after one of the co-founders of
the business Ronald Wayne, sold his share of the company to Steve Jobs. The company
also received its first investment from Mike Markkula for the amount of $250,000. As time
progressed so did the company, with its revenue doubling every quarter for the first five
years; apple was making a name for itself.
Apple’s first major step in the market was geared towards the corporate and business
world. The “Apple III” was developed and catered for the business market by a marketing
team, as opposed to apple’s initial engineering approach to product development. This
method proved to be detrimental, as the product had many failures and ultimately tarnished
the company’s reputation. This is where apple encountered one of its first downfalls, and
learned a lesson that resonated with the company, one that they continue to utilize to stay
as a top dog in today’s market.
